Balu Forge Industries Ltd. (BFIL), a precision engineering and manufacturing company, has announced its financial results for the quarter ending June 30, 2024. The company reported a 33% increase in net profit, reaching ₹341.67 million.
Revenue from operations increased by 55.99% to ₹1,753.09 million, compared to ₹1,123.85 million in Q1 FY24, driven by new client additions and high demand for specialized engineering products. EBITDA grew by 97.31%, with margins rising from 19.48% in Q1 FY24 to 24.64% in Q1 FY25 due to expanded operations and greater demand for heavier products that offer better margins.
The board recommended a final dividend of 1.50% per equity share of Rs.10/- each for FY24. PAT margins improved from 14.83% in Q1 FY24 to 19.49% in Q1 FY25. BFIL has acquired three advanced forging production lines, capable of producing 72,000 tons of forged products, which include a 16-ton closed die forging hammer, a 10-ton closed die forging hammer, and an 8,000T mechanical press, thus expanding the company’s product portfolio and R&D capabilities.
Additionally, the company plans to raise ₹496.80 crores to enhance manufacturing capacity and support India’s self-reliance in defense, railways, and aerospace sectors. This fundraise will include procuring Solid Wheel Rolling Machinery to produce large railway wheels and further strengthening the company’s ability to serve the defense, aerospace, and railways sectors.
Trimaan Chandock, Executive Director of BFIL, stated, “We are pleased with our robust revenue growth and the strategic investments we are making to expand our capabilities and product offerings. Our commitment to innovation and quality positions us as a leading player in the industry, and we remain focused on driving growth and enhancing stakeholder value.”
Balu Forge Industries Ltd, founded in 1989, manufactures fully finished and semi-finished crankshafts and forged components, with a product range from 1 Kg to 1000 Kgs. The company has a global distribution network and serves various sectors, including light vehicles, agricultural equipment, power generation, commercial vehicles, and more. BFIL is also involved in the defense, oil & gas, railway, and marine industries.
